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Yes. Then 8 CFR 214.2(h)(8) does apply. You have to get an H1 visa to work for the original petitioner, or the H1 is fine, and you are not considered counted in the quota.

Does this mean the new company can apply for a H1B transfer only after I go to my consulate back home and get the stamping done. Is there a way to do the transfer after Oct 1 without travelling to the consulate.

"If the H-1B is revoked before the beneficiary can be considered in H-1B status – i.e. before October 1 of the given year, or if they consular process, prior to the beneficiary using the petition to apply for a visa/admission, then they would not be considered counted under the cap.""

In this case, it is consular notification, so the OP would not be counted under the quota if he doesn't get an H1 visa and starts with the employer.

"If the H-1B is revoked before the beneficiary can be considered in H-1B status – i.e. before October 1 of the given year, or if they consular process, prior to the beneficiary using the petition to apply for a visa/admission, then they would not be considered counted under the cap.""

In this case, it is consular notification, so the OP would not be counted under the quota if he doesn't get an H1 visa and starts with the employer.

I was assuming OP will stay with the current employer till Oct 1 and hence petition is not withdrawn. Otherwise, what's the point of applying after Oct 1.

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I was assuming OP will stay with the current employer till Oct 1 and hence petition is not withdrawn. Otherwise, what's the point of applying after Oct 1.

Please read this again, in particular the part I highlighted in red:

"If the H-1B is revoked before the beneficiary can be considered in H-1B status – i.e. before October 1 of the given year, or if they consular process, prior to the beneficiary using the petition to apply for a visa/admission, then they would not be considered counted under the cap."

The OP said this is consular notification, i.e., the status would not change on Oct. 1. That means the OP would have to get an H1 visa at the notified consulate, and then enter with that visa and start working for the employer in H1 status. Only then would he be able to transfer the H1.